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Paylocity Holding Corporation (PCTY-0.05%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports total revenues of $376.98 million for the quarter, an increase from $326.36 million in the same quarter the previous year. This growth is attributed to the strong performance of the sales team and an increase in recurring and other revenue.
Cost of revenues increased to $124.55 million from $107.40 million in the previous year, primarily due to higher employee-related costs and increased amortization of internal-use software.
Operating expenses rose to $205.81 million from $169.26 million. Sales and marketing expenses increased to $93.13 million, while research and development expenses rose to $56.15 million.
General and administrative expenses reached $56.52 million, up from $43.34 million, due to higher employee-related costs and the absence of a prior year gain related to lease exit activity.
Net income for the quarter was $37.47 million, a slight decrease from $38.12 million in the same period last year. The effective tax rate decreased to 20.0% from 28.8%, primarily due to excess tax benefits from stock-based compensation.
Cash provided by operating activities was $145.66 million. The company used $300.97 million in investing activities, primarily due to acquisitions, and generated $835.53 million from financing activities, including borrowings under its credit facility.
Paylocity acquired Airbase Inc. for $320.36 million, funded by borrowings under its credit facility. The acquisition aims to enhance Paylocity's spend management capabilities.
The company repurchased 43,648 shares of its common stock for approximately $8.60 million under its share repurchase program, which has $341.36 million remaining for future repurchases.
Paylocity continues to invest in its sales and marketing, research and development, and general administrative functions to support long-term growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Paylocity Holding Corporation quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.